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Home ownership remains the ultimate goal for ‘Generation Rent’ yet aspirations to buy a home within the next five years are dimmed compared to just a year ago according to the second annual Collyer Bristow Home Ownership Attitudes and Aspirations report for London and the South East. There are also signs that the ‘Bank of Mum and Dad’ may be running dry.
A full copy of the Collyer Bristow Home Ownership Attitudes and Aspirations can be downloaded click here.
The annual Collyer Bristow report is based on the hopes and aspirations of a panel of 564 18 to 44 year olds in London and the South East living in rented and owned accommodation.
The report finds that men are more confident (62%) that they will own their own home within the next five years than women (47%), and that men are more likely (51%) to receive help from their parents than women (30%). Just 8% have no aspiration to own their own home at all.
Home ownership aspirations appear to fade as individuals get older, with 65% of 18-24 year olds believing they will own their own home within the next five years, falling to 55% amongst 25-34 year olds and 43% with 35-44 year olds.
Alex O’Connor, a Real Estate Partner at Collyer Bristow said: “The past 12 months saw house prices slow or stall and rents increase, so it is no real surprise that our dream of home ownership remains undiminished. But the uncertainty in the market, no doubt caused by our protracted exit from Europe and the General Election, is being felt. There has been a marked fall in the number of people who believe they will own their own home within the next five years – confidence in the housing market has yet to return.”
Buying a new home has always relied on personal or joint savings, but the Collyer Bristow report suggests that savings are no longer enough.
“The ’Bank of Mum and Dad’ played an important role for 45% of those who have purchased a home in the last 12 months, up from 32% in 2018,” says Alex. “Legal and General report that £6.3bn was lent by parents to their children to help them climb the property ladder, making it one of the top six UK property lenders.”
“But our survey suggests the ‘Bank of Mum and Dad’ may be running dry. Of those expecting to buy a home, just 25% believe the bank of mum and dad will be in a position to help. One statistic that continues to surprise is just how important inheritance plays, with some 22% inheriting either cash or property. The ‘Bank of Mum and Dad’ helps in many different ways.”
The Collyer Bristow Home Ownership Attitudes and Aspirations reports on the slowly growing trend of dedicated co-living schemes.
Alex says: “They remain a niche product – just 2% of our sample live in co-living schemes – but they are playing an important role in our housing landscape, especially in London. They are particularly popular with the 18-24 age bracket – some 4% of our survey in this age range live in a co-living development – attracted by a single monthly fee and modern amenities.”
“Developers are increasingly looking to include an element of co-living, alongside build to rent and build to sell, in large residential and mixed-use schemes.”
28 January 2020
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